Review of homework

ANOVA as model comparison

H0: \(\beta_0\) explains everything \[y_i=β_0 + e_i\qquad e_i ∼ N(0,\sigma^2)\]

H1: \(\beta_1\) is relevant \[y_i=β_0 + β_1 x_i + e_i\qquad e_i ∼ N(0,\sigma^2)\]

Doing the ANOVA

In Excel

Two factors

H2: \(\beta_1\) and \(\beta_2\) are relevant \[y_i=β_0 + β_1 x_i + β_2 s_i + e_i\qquad e_i ∼ N(0,\sigma^2)\]